Malaysia: Rubber Prices Likely To Continue Upward Trend This Week

KUALA LUMPUR — Malaysian rubber prices will likely continue their upward trend this week on the current strong sentiment, aided by an anticipated increased interest from buyers, dealers said. A dealer said the local rubber market would continue to closely watch the movement of regional futures markets on the Tokyo Commodity Exchange which is currently trading steadily. Another dealer said improving global prices of oil, the raw material used in the production of synthetic rubber, would contribute to higher prices for natural rubber. Oil prices currently stand at US$50 per barrel.

“However, the rubber prices will also track the ringgit’s movement,” the dealer added. For the week just ended, the Malaysian Rubber Board’s (MRB) official physical price for tyre-grade SMR 20 rose 17 sen to 522 sen per kg while latex-in-bulk was up 4.5 sen at 453 sen per kg. The 5 pm unofficial closing price for SMR 20 gained 9.5 sen to 522.5 sen per kg while latex-in-bulk declined 0.5 sen to 452 sen per kg.